Intro
Our last post took a hard look at what isn’t working in V1. This one is about what comes next. ParyonUSD V2 is being built, and it’s shaped by your feedback and by what running V1 in practice showed us could be better.
V2 keeps what works: BCH-backed loans, a stability pool, redemptions that hold the peg, and borrowers setting their own interest rate. What changes is almost everything around it. Here is what that means for you.
Borrowing that grows with you
- Borrow more on an existing loan. In V1, the only way to borrow more was to open a second loan, with its own key, minimum and fees. In V2 you simply draw more against the collateral you already have.
- Your collateral stays yours. Interest is now added to your debt in PUSD instead of being paid out of your BCH collateral, so your BCH doesn’t shrink over time.
- No more waiting on redemptions. If part of your loan is being redeemed, you can still withdraw the collateral that redemption doesn’t need, instead of waiting for it to settle.
- Room for one-step leverage. The V2 contracts let borrowed PUSD be swapped for BCH in the same transaction that opens or grows a loan, so a leveraged position could open in a single step instead of by stacking loans. The contracts make this possible from day one; the leverage feature itself is still to be built.
Staking without the wait
The 10-day epoch is gone. V2 runs on a single clock: the daily period.
- Auto-compounding. Interest is paid in PUSD and added straight to your stake, with no claiming. Your stake sits in a vault you hold the key to, and anyone can keep it up to date for a tiny fee from its own balance, so you can stay away for months.
- Start earning the next day. A new stake earns from the next period, not up to 10 days later.
- Withdraw when you want. No epoch to wait out, and you can withdraw just part of your stake.
- Merge your stakes. Staking on a schedule doesn’t leave you with a pile of vaults and keys: merge them into one stake in a single transaction.
- A clearer yield. You earn the asset you stake, so the APR is simple to read. Liquidation gains are still paid in BCH.
- No longer the first line of defense. Anyone can liquidate a loan below 110%, and the pool only steps in below 105% as the backstop, so your stake is converted to BCH only when really needed.
A calmer rate market
The redemption waves and rate swings from our last post get dedicated fixes:
- A redemption fee that rises with volume. Every redemption still pays the 0.5% base fee, and a surcharge on top grows as more is redeemed and fades back over time. Waves get more expensive the bigger they get.
- A small fee for changing your rate again within a week, and among loans at the same rate, the one that changed most recently is redeemed first. Toggling in and out of the queue no longer pays.
Together, these make the rate you set mean something again: pick a sensible rate and you can leave it alone.
Timelocked migrations
The price contracts are the one part of ParyonUSD that can be upgraded, so the oracle can evolve over time. In V2, every migration is timelocked: it has to be announced on-chain first, with a stated reason, and can only go through after a notice period of about two days. Anyone can see it coming and review it. The migration key is also narrowly scoped: it can move the price contracts to new code, and nothing else.
Built for Bitcoin Cash in 2026
V2 is written for the May 2026 network upgrade, which brought loops and much larger token commitments to Bitcoin Cash. That’s what makes features like batched staking payouts possible, and it lets each loan carry its own history on-chain: when it opened, what it accrued, repaid and had redeemed. Any wallet that reads token metadata can show your loan’s full picture, without an indexer.
What’s next
V2 is still in active development: we are testing the contracts and calibrating parameters like the redemption fee. V2 will also come with a formal verification of its contracts, fully open source, so anyone can check the proofs for themselves. It will be a new deployment with its own PUSD, and V1 keeps working as it does today. There’s no launch date yet; we’ll share the plan for launch and for moving from V1 in an upcoming post.
Join the Conversation
We’d love to hear what you think of V2, and which of these changes you’re most excited about.
- Follow ParyonUSD on X: x.com/ParyonUSD
- Join the ParyonUSD group on Telegram: t.me/ParyonUSD
In our Telegram group you can engage directly with the team - ask questions, share your thoughts, and be part of the ongoing conversation as we build ParyonUSD together!